Overview

This classic book introduced the investment industry to the concept of trading psychology. Drawing on firsthand commodity trading experience, Mark Douglas reveals how the mental traits that help us function effectively in society can become significant barriers in the world of trading.

Key Insights

After examining how losing attitudes develop, The Disciplined Trader prepares you for a thorough "mental housecleaning" of deeply-rooted thought processes. The book shows you how to develop and apply attitudes and behaviors that transcend psychological obstacles, ultimately leading to consistent trading success.

Endorsements

“A groundbreaking work published in 1990 examining as to why most traders cannot raise their equity on a consistent basis, bringing the reader to practical conclusions to go about changing any limiting mindset.”

Structure & Approach

The book is divided into three parts:

• An overview of the psychological requirements of the trading environment.
• A definition of the problems and challenges of becoming a successful trader.
• Basic insights into which behaviors need to change and how to build a framework for achieving this goal—including developing specific trading skills from a clear, objective perspective on market action.

Final Reflections

The Disciplined Trader empowers you to join the elite few who consistently capture the greatest market profits. By developing a systematic, step-by-step approach to managing your trading behavior, this timeless work provides the essential tools to overcome psychological obstacles and achieve lasting success.